Kayode Tokede
As most companies listed on the Nigerian Exchange Limited (NGX) announced increase in profit before tax in H1, the likes of Ardova Plc, R.T Briscoe (Nigeria) Plc, Japaul Group Plc, and 8 other companies have reported a sum of N3.44 billion loss before tax in half year (H1) ended June 30, 2022.
This 54 per cent lower when compared to N7.5billion loss before tax declared by these 11 companies in half year ended June 30, 2021.
The other companies are: Omatek Ventures, Union Dicon Salt Plc, The Tourist Company of Nigeria Plc, Morison Industries Plc, UPDC Plc, Meyer Plc, SCOA Nigeria Plc, and FTN Cocoa Processors Plc.
The performance of these companies on the NGX revealed mixed performance in revenue, hike in operating expenses and finance costs that led to poor corporate earnings and eventually, dwindling stock prices.
In the period under review, companies in Nigeria were facing high cost of doing business, foreign exchange restrictions, a hike in interest on borrowed funds due to 13 per cent Monetary Policy Rate (MPR) now currently 14 per cent and a double-digit inflation rate that have driven the cost of goods and service at astronomically level.
Some, specifically, Omatek Venture with a business decision that went wrong compounded to its losses over the years.
In December 2012, Omatek Venture secured a term loan and working capital facility totalling N5.81 billion from BOI for the purpose of financing the procurement of assembly components for the production of laptops. But things went awry for the company and it could not service the loan, leading to a court order to take over the premises of the tech company.
Amid poor corporate earnings and late filing of results, the likes of The Tourist Company of Nigeria is on the NGX delisting watch list.
The board of NGX RegCo had approved the reclassification of Omatek Ventures from delisting watch list to restructuring status giving the company time to source investors and reclassify its operations.
In addition, FTN Cocoa Processors, and Union Dicon Salt are placed on restructuring status on the backdrop of complaining post-listing requirement of filing result and accounts to the Exchange.
FTN Cocoa Processors in 2019 stated that it was facing a threat to its continuity as its bankruptcy issue heightened.
The firm in a statement to said the situation was due to the unfavourable condition of the company due to the non-availability of required working capital to procure cocoa beans, stressing that various efforts are being made by the company to secure working capital both locally and internationally were yet to yield desired results.
According to findings by THISDAY, Ardova with a significant increase in finance cost to N2.18billion in H1 2022 from N489 million reported in H1 2021, announced in its unaudited result and accounts a loss before tax of N1.15billion in H1 2022 from N2.6billion loss before tax reported in H1 2021.
Of all the companies that have submitted H1 2022 unaudited results, the reported figure by Ardova is the highest loss before tax reported by listed companies on the bourse, according to an investigation by THISDAY.
A total of N1.45billion interest on long-term bond and N694.27million interest expense on bank loans and overdrafts contributed to the Ardova’s loss in the period under review.
Ardova had announced N192.47billion revenue in its full year result and accounts ended December 31, 2021, representing an increase of nearly six per cent from N181.66billion reported prior year full result and accounts.
The company, thus, closed the 2021 financial year with N1.54billion profit as against N2.06billion reported in 2020 full year result and accounts.
The Nigerian leading indigenous and integrated energy company involved in the distribution of petroleum products had announced first quarter (Q1) ended March 31, 2022 unaudited result and accounts that showed significant improvements as yields from investments made in 2021 contribute to growth in revenue, sales volume, and profits.
As revenue grew by 1.4 per cent to N50.6billion in Q1 2022 from N41.65billion reported in Q1 2021, Profit, before tax appreciates by 37 per cent to N1.60 billion in Q1 2022 from N1.17billion, reported in Q1 2021.
The Chief Financial Officer, Ardova, Moshood Olajide in a statement said, “We also continued to increase our capital expenditure, principally in investments that facilitate our strategic expansion, and we expect to see returns within a three-year window.”
Following Ardova is R.T Briscoe (Nigeria) Plc that reported N953.32million loss before tax in H1 2022 from N947.58million in H1 2021 amid 161 per cent increase in cost of sales to N6.64billion in H1 2022 from N2.54billion in H1 2021.
Despite announcing 154 per cent increase in revenue to N8.02billion in H1 2022 from N2.04billion in H1 2021, R.T Briscoe (Nigeria)’s cost-effective management plunges its profit to loss.
Further findings revealed that The Tourist Company of Nigeria Plc saw its loss before tax dropping from N2.33billion in H1 2021 to N451.13million in H1 2022, following its expenses that surpassed revenue.
The Tourist Company of Nigeria reported 25 per cent increase in expenses to N2.29billion in H1 2022 from N1.84billion in H1 2021, while its revenue grew by 35.4 per cent to N1.66billion in H1 2022 from N1.22billion in H1 2021.
Other companies that reported loss before tax include: Japaul Group with N426.6million loss before tax in H1 2022 from N257.54million in H1 2021; FTN Cocoa Processors announced N169.77million loss before tax in H1 2022 from N689.66million in H1 2021; Union Dicon Salt announced N91.02million loss before tax in H1 2022 from N14.22million in H1 2021 and SCOA Nigeria Plc declared N78.86millin loss before tax in H1 2022 from N85million loss before tax reported in H1 2021.
Omatek Ventures posted N48.99million loss before tax in H1 2022 from N8.26million loss before tax in H1 2021; Morison Industries in the period reported under review announced N46.67million loss before tax as against N36.47million loss before tax in the corresponding period; UPDC reported N6.14million loss before tax in H1 2022 from N511.48million in H1 2021 as Meyer posted N20million loss before tax in H1 2022 from N7.51million reported in H1 2021.
‘No Change in Management of Trucks Transits Parks Limited’
The Management of Trucks Transit Parks Limited, (“TTP” or the “Company”) has issued a public notice to re-emphasize the media notice earlier issued July 23, 2022, that Mr. Jama Onwubuariri remains the Company’s Co-founder and Managing Director and not Mr. Temidayo Adeboye.
The company in the notice said Adeboye or anyone else claiming to be the Acting Managing Director of TTP is acting in outright violation of a court order which mandates the maintenance of the status quo until all the parties return to court.
“This means that the entire board of directors of the company remains unchanged and intact as filed and certified at the Corporate Affairs Commission (CAC), Abuja. The general public is therefore advised to disregard any information, or anyone purporting to be issued by the Acting Managing Director or claiming that a change in the composition of the Board of Directors of TTP has taken place, and to treat Mr. Adeboye or any person parading himself as the Acting Managing Director of the Company as an impostor. Anyone who deals with the said party(ies) does so at their risk.
“TTP wishes to officially state that Mr. Adeboye is in breach of existing court orders and anyone who deals with Mr. Adeboye would be in breach of the same orders. All information about our management team can be confirmed in the About Us section of our website, www.ttp.com.ng. Our 24/7 operational support to the maritime ecosystem in Apapa remains uninterrupted. To learn more about us, visit our website or reach out to our media contact below, “it stated.
